Authorize.Net Settlement Process

For clients utilizing the Authorize.Net platform, it is important to understand the settlement process and the impact on funding. All Velocity clients have the ability to select and manage the Authorize.Net setting that determines the daily cutoff time.

You control the cutoff time.

Authorize.Net allows clients to select a daily cutoff time to determine when a batch should end and allow for a new batch to begin. The cutoff time is initially defaulted to 6:00 PM and may be modified at any time by an authorized user. To update the cutoff time, click here to login to your Authorize.Net account.

Batch files are sent from Authorize.Net to Elavon

Once the batch is settled at the cutoff time, the settlement file is created by Authorize.Net and securely transmitted to Elavon. This process is not immediate as there millions of settlement files daily. Typically a settlement file is delivered to the processor within one hour, however it may take a few hours depending on the settlement time, the calendar day, the number of previous settlement files, and seasonal impact (i.e., Christmas).

Risk Analysis of Batch

Every batch submitted to a processor is reviewed as mandated by the card associations (Visa, MasterCard, American Express, and Discover). The individual transactions are analyzed by sophisticated software programs that identify unusual transactions, atypical transaction amounts, and cards that have been flagged by issuing banks as fraudulent. This process is designed to protect the issuing bank, the processor, and most importantly, your business.

Movement of Funds by the Federal Reserve

Once the batch has passed all of the security inspections, it is time stamped and sent to the Federal Reserve, who in turn moves the money to the depository financial institution. The cutoff time for this process is 10:00 PM EST. If the time stamp is 10:01 PM EST, the batch will miss the cutoff time and funds will be delayed by one additional business day.
Settlement DaySettlement TimeTime ZoneFunds PostedExclusions
Mondayby 10:00pmEasternTuesdayWeekends / National Holidays
Tuesdayby 10:00pmEasternWednesdayWeekends / National Holidays
Wednesdayby 10:00pmEasternThursdayWeekends / National Holidays
Thursdayby 10:00pmEasternFridayWeekends / National Holidays
Fridayby 10:00pmEasternMondayWeekends / National Holidays
Saturdayby 10:00pmEasternTuesdayWeekends / National Holidays
Sundayby 10:00pmEasternTuesdayWeekends / National Holidays
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